Question

The cost of gas increases monthly at a rate of 3.2%. If gas cost $1.75 today. How much will it cost in 3 years? ( round to the nearest cent (2 decimal places) )

Answer 1

$1.92

Explanation:

present cost = $1.75

time = 3 years

rate = 3.2%

cost after three years = present cost (1 +
`(R)/(100)` )^3

=$1.75 (
`(103.2)/(100)`)^3

=$1.75*1.099

=$1.92

Threrefore , after 3 years cost of gas will be $1.92.